Buying a boat, need some help with negotiations!

[Sir Shagsalot]

Hi,

Originally Posted by MrNoSmiles

I offered the seller $85,000, and we met in the middle at $90,000.

My financing company (BoatUS) is valuing the boat at $86,450, stating that they cannot finance the value of the Dinghy that the boat is currently equipped with.

I have no idea on financing in the US - but one thing is for sure, if your finance company is going to finance a boat on whatever terms 86 bags of sand when you owe 90, and you cannot meet the difference out of your own pocket without pain, you should not buy a boat (or 2nd hand sportscar, or 2nd hand house, or 2nd Marriage Trophy Wife).

I would say - no matter what the legal situation, bargain like an armenian rug-seller with both seller and finance, I'd say neither want to loose your business in the current economy, but be prepared to take the hit.

If you kept at least 10% of the boat price as reserve for maintenance (and you should probably have budgeted 20% in cash reserve after the deal is complete to be safe) you won't worry too much.

Greez SSAL

[zeehag]

anyone in san diego not using kjels christian as surveyor is asking for a fleecing.
sadly he is only honest surveyor i have met. he is GOOOOD. the brokers are scared of him he is honest. he is thorough and he is good.

[Hamish_ct]

The dinghy is not part of the boat and the finance company is financing the boat not the dinghy. Negotiate the price minus the dinghy and either pay cash for the dinghy or don't take it.

No finance company is going to pay for the dinghy as part of the boat purchase. Its a completely separate asset. The finance company is looking at the value of the boat as the collateral for the loan that is why they won't do it.

Good luck with your boat.

[duefocena]

Agreed on Kjells Christian as a really good surveyor. He has done a number of boats for me. Another in San Diego is Brad De Stache. He is great for engine and hull.

[Captain-Avenger]

Originally Posted by MrNoSmiles

Hey all, I am in the process of buying a nice 40ft boat for sailing adventures...

My financing company (BoatUS) is valuing the boat at $86,450, stating that they cannot finance the value of the Dinghy that the boat is currently equipped with.

Should I renegotiate the sell price with the seller based on this? Can I just negotiate what I am willing to pay out of pocket for the dinghy?

I haven't read all the replies, but my first gut reaction to this is that obtaining financing is not the responsibility of the seller! To ask him to lower his selling price so that you can go to a financing company that does not finance dinghies is quite a stretch.

If you have to finance at 100% and can't cough up the $3500 cash for the dinghy then you probably should not be buying a boat in the first place.

I know if I were selling my house, found a buyer at my price, and they later came back and asked me to reduce my selling price by 10% because their bank only financed new mortgages at 90%, I would tell them to go screw because financing is definitely not my responsibility or problem. If you found a good price then suck it up and invest a little of your own cash into the game.

[zeehag]

the dinghy is equipment not with a price. is a part of the deal. financing is on you 100 percent
good luck.

[Lizzy Belle]

I'm a bit late to this thread - did you end up buying the boat?

Originally Posted by MrNoSmiles

I offered the seller $85,000, and we met in the middle at $90,000. My financing company (BoatUS) is valuing the boat at $86,450

I fail to see the issue here - you finance $86,450 and pay the remaining $3,550 out of pocket - for the dinghy.

At least, that's how I would go about it